What is Cloud Accounting Software?
Cloud Accounting Software, also known as online accounting software, is accounting software that helps you maintain your books of accounts online. Unlike the traditional accounting software installed on your desktop, computing accounting software is hosted on a remote server rather than a server on your business premises. It is based in the cloud instead of being installed on your computer.
Thus, in QuickBooks Cloud Based Accounting software, the accounting data is sent on the cloud, processed on a remote server, and then returned back to you as a user. In simple terms, cloud accounting software allows users to access software applications through the internet or other networks through a cloud application service provider.
Thus, you as a small business owner need not install accounting software separately on every desktop being used in your firm. Further, since everything is based online, your employees sitting in any part of the world can collaborate and access the data uploaded on the cloud accounting software from any part of the world at any time.
Problems With Traditional Accounting Software
When you are starting your own business, traditional accounting software may seem to be a good option for managing your books of accounts. But there are certain challenges with the traditional accounting software that you need to keep in mind before investing in such software.
The traditional accounting software licenses are typically expensive. Furthermore, shelling out money each time a software update is released or investing money for storing data can turn out to be costly as well as time-consuming for your small business.
Data Not Up To Date
The data stored in the traditional accounting software is not up to date unless one manually updates the latest invoices, expenses, incomes, etc. In addition to the data, the software updates do not take place regularly. This is because it is expensive, challenging, and time-consuming to upgrade the software with the latest updates.
Limited User Access
Since the traditional accounting software is individually installed on certain desktops, the financial information can be accessed only by limited users, that is, the persons on whose desktop the accounting software is installed.
Since the important people of the company are unable to access the financial information and client details, the teams are unable to collaborate.
Lack of Data Security
In the case of traditional accounting software, the financial data is stored either in computer hard drives, external hard drives, or USB devices. This increases the chance of the data getting lost.
Furthermore, the data is also prone to viruses, corruption, hacking, and maintenance challenges, it can make you lose your data anytime and could mean loss of time, effort, and money for your business.
Increased Errors Due To Manual Data Entry
Since you are manually entering data in the traditional accounting software, there are higher chances of errors. This could mean inaccurate financial data which could have a severe impact on your business decisions.
Why Does A Small Business Need To Switch To Cloud-Based Accounting Platforms?
As a business owner, you need accounting software that helps you save time, increase productivity and the one that is cost-effective.
You simply cannot rely on traditional accounting software as there are chances of committing data entry errors, subjecting financial information to data loss and viruses as a result of storing it in hard drives and USB devices, and shelling out huge amounts of money on data backups devices and software updates.
Thus, if you are still dependent on traditional accounting software, it’s time to switch to cloud-based accounting platforms.
Scale Your Business With QuickBooks Cloud Accounting
Scaling of business refers to growing business without increasing costs. With computing Accounting Software, you can grow your business in terms of getting more clients without the need to invest money in purchasing new software to store financial data into multiple accounts.
With Cloud Accounting Software, you can automate certain routine tasks of your business. This could include sending recurring invoices to your customers, sending payment reminders, etc.
Furthermore, with your bank accounts integrated with your cloud-based accounting software, there is no need for you to manually enter the data. This is because the online accounting software automatically fetches all your banking transactions.
Save Time and Cost
Unlike the traditional accounting system, where you have to do everything manually, cloud-based accounting software helps you save time and cost in a variety of ways. For instance, you can send recurring invoices and set payment reminders for your customers.
You can further automate your accounting process by integrating your bank accounts with the online accounting software that fetches your banking transactions automatically. You can even generate business reports within no time and send them to your customers anytime, anywhere.
Third-Party Integrations Make Accounting Easy
Cloud-Based Accounting Software comes with third-party integrations like payroll, inventory, expenses management, etc. This gives you the flexibility to work with apps you are comfortable working with.
Further, there is no need for you to switch between different apps to manage various aspects of your business as you can manage the same all in one place.
Regular Software Updates
Cloud-Based Accounting Software releases regular software updates for security as well as the latest accounting features. Such updates make your financial data safe and also give you the advantage of the new-age functionality. This saves you time and helps you take your small business to the next level.
Unlike traditional accounting software, you can Fast Track payments by creating and sending invoices on-the-go from any device to your customers with cloud-based accounting software.
Likewise, you track data such as sales and expenses and create and send business snapshot reports to your customers anytime, anywhere. Also, you can collaborate with your remote teams on the same financial data and allow them to work on such data simultaneously.
To Know more about QB Desktop vs Online visit Apps4Rent.